Reserve banking

Does fractional reserve banking endanger the economy? A debate

On April 16, 2018, two free-market economists debated a topic that has long divided libertarians. Fractional Reserve Bank refers to the common practice of banks to hold only part of their depositors’ money and lend out the rest. In The mystery of the bank (1983), anarcho-capitalist economist Murray Rothbard called fractional reserve banking “a shell […]